IS IT A GOOD FIT?
I was talking to an entrepreneur recently about bringing on investors. On the surface, it sounds good and could be a good decision, but it isn't necessarily the right decision. There are many factors you must weigh when you start looking at involving other people in your business.
Someone doesn't just give money and hope you will give him/her a return on their money. They will want to see how you are going to spend the money, why you need the money, and have the confidence in you and your idea that you will be able to deliver on promises to repay or provide substantial earnings on the money they put in. Additionally, they may expect periodic updates and a full accounting of what you are doing with the business. This takes time and energy and may in fact detract from your growing your business.
Keeping this in mind will help you weigh the decision about bringing on investors. I'm not suggesting that it is a bad thing or a good thing necessarily, just to look at all the factors involved so you can make informed decisions.